Share prices are expected to move sideways this week, when more companies are set to release second-quarter financial reports and with the onset of the so-called ‘ghost month’ in Chinese trading.
Philstocks Financial Inc. trader Justino Calaycay said investors were anticipating the release of earnings reports by more listed companies which was a major catalyst for the benchmark’s recent rise to the 8,000-point level.
Among the listed companies which will release second-quarter income reports this week are SM Prime Holdings Inc., SM Investments Corp., Ayala Land Inc., PLDT Inc. and San Miguel Corp.
Calaycay said earnings reported by companies so far were weak, which could deflate confidence and make it even more difficult for the bellwether to get past the 8,000 level.
“Also fast rising on the horizon is the annual Chinese ‘ghost month’ whence trades are seen to slacken. It could be an opportunity to take positions or it could be the breathing spell investors need to take a hard second, or even third look at the matrices that define their investment strategies,” Calaycay said.
“At this juncture the psychological barrier lies at the 8,000-mark with support still holding at the 7900-line. Only and only if the fundamentals do catch up with the recent spike in confidence that reflected in a surge in prices, will a return to the 8,000-level be justified,” he said.
The Philippine Stock Exchange index, the 3-company benchmark, declined 1.7 percent last week to close at 7,932.82 on Aug. 4, snapping a four-week run. The index continued to struggle to stay above the 8,000 level. The broader all-share index dipped 1.2 percent to 4,734.38.
Except for the industrials, which went up 0.3 percent, all other major indices ended in the red, led by services which dropped 2.3 percent, property which declined 2.3 percent and mining and oil which fell 0.9 percent.
Foreign investors were net buyers last week by P229 million, while average daily turnover was steady at P6.6 billion.
Among top gainers last week were Lopez-owned stocks Energy Development Corp. which jumped 15.7 percent to P6.90, Lopez Holdings Inc. which advanced 7.2 percent to P7.30 and First Gen Corp. which climbed 1.8 percent to P18.36.
Heavy losers included Leisure and Resorts World Corp. which retreated12.1 percent to P4.26, Concepcion Industrial Corp. which fell 12 percent to P65.10 and JG Summit Holdings Inc. which declined 7.4 percent to P74.
